Hey Chegg, I need help with this problem.

The interest rates in the $ and the euro are 2% and 5% respectively. If the spot exchange rate is $1/1 euro, what will the expected spot rate be, if the IFE applies? What is the meaning of IFE?

I believe this is the formula, but I could be wrong:

[(S₁ - S₂) / S₂] x 100 = i_$ - i_y

S₁ is the spot exchange rate at the beginning of the period

S₂ is the spot exchange rate at the end of the period

i_$ and i_y are the respective nominal interest rates in the United States and a foreign nation

Please show your work step by step. It will really help me to figure out where I went wrong.